Celsius (NASDAQ:CELH) Stock Falls 5.9% - Here's What Happened

Key Points

• Celsius shares fell 5.9% to about $28.20, with trading volume roughly 61% below the stock’s average session volume.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and average price target of $41.76, although TD Cowen and Needham recently cut their targets to $35.
• The company’s latest quarterly results missed expectations: EPS came in at $0.36 versus $0.41 expected, while revenue reached $817.93 million, below the $870.08 million consensus estimate.

Celsius Holdings Inc. (NASDAQ:CELH - Get Free Report) shares traded down 5.9% during trading on Wednesday. The stock traded as low as $28.44 and last traded at $28.1950. Approximately 3,044,004 shares changed hands during mid-day trading, a decline of 61% from the average session volume of 7,822,217 shares. The stock had previously closed at $29.96.

Analyst Upgrades and Downgrades

A number of research firms have weighed in on CELH. Weiss Ratings downgraded Celsius from a "hold (c-)" rating to a "sell (d+)" rating in a report on Tuesday, August 11th. TD Cowen reduced their price target on shares of Celsius from $41.00 to $35.00 and set a "buy" rating for the company in a research report on Tuesday, October 13th. Morgan Stanley set a $42.00 price objective on shares of Celsius and gave the stock an "overweight" rating in a research note on Friday, August 7th. Zacks Research upgraded shares of Celsius from a "strong sell" rating to a "hold" rating in a research report on Tuesday, October 6th. Finally, Needham & Company LLC cut their target price on shares of Celsius from $55.00 to $35.00 and set a "buy" rating for the company in a research report on Thursday, August 6th. Fourteen equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $41.76.

Celsius Price Performance

The firm has a 50 day moving average price of $29.41 and a 200 day moving average price of $30.30. The company has a quick ratio of 1.42, a current ratio of 1.80 and a debt-to-equity ratio of 0.56. The stock has a market cap of $7.16 billion, a P/E ratio of 117.81, a P/E/G ratio of 2.11 and a beta of 1.01.

Celsius (NASDAQ:CELH - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The company reported $0.36 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.41 by ($0.05). Celsius had a net margin of 4.24% and a return on equity of 36.52%. The company had revenue of $817.93 million for the quarter, compared to the consensus estimate of $870.08 million. During the same quarter last year, the firm posted $0.47 earnings per share. The company's revenue was up 10.6% compared to the same quarter last year. On average, analysts forecast that Celsius Holdings Inc. will post 1.42 EPS for the current fiscal year.

Insider Activity

In related news, Director Damon DeSantis acquired 20,000 shares of the business's stock in a transaction on Monday, September 14th. The stock was acquired at an average cost of $27.65 per share, with a total value of $553,000.00. Following the acquisition, the director directly owned 2,712,187 shares in the company, valued at $74,991,970.55. This represents a 0.74% increase in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, Director Hal Kravitz bought 12,000 shares of the company's stock in a transaction that occurred on Tuesday, September 15th. The shares were bought at an average price of $28.00 per share, with a total value of $336,000.00. Following the transaction, the director owned 239,158 shares of the company's stock, valued at $6,696,424. The trade was a 5.28% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have acquired 66,000 shares of company stock worth $1,830,120 over the last ninety days. Corporate insiders own 2.33% of the company's stock.

Hedge Funds Weigh In On Celsius

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Quadrant Capital Group LLC grew its stake in shares of Celsius by 9.7% during the third quarter. Quadrant Capital Group LLC now owns 17,856 shares of the company's stock valued at $499,000 after buying an additional 1,586 shares during the last quarter. Vontobel Holding Ltd. boosted its stake in shares of Celsius by 17.7% during the third quarter. Vontobel Holding Ltd. now owns 23,461 shares of the company's stock valued at $642,000 after purchasing an additional 3,522 shares during the period. TD Waterhouse Canada Inc. grew its holdings in shares of Celsius by 567.2% in the third quarter. TD Waterhouse Canada Inc. now owns 79,234 shares of the company's stock worth $2,171,000 after purchasing an additional 67,358 shares during the last quarter. Krilogy Financial LLC increased its stake in Celsius by 8.8% in the 3rd quarter. Krilogy Financial LLC now owns 8,826 shares of the company's stock worth $251,000 after buying an additional 712 shares during the period. Finally, GAMMA Investing LLC lifted its holdings in Celsius by 85.4% during the 3rd quarter. GAMMA Investing LLC now owns 4,870 shares of the company's stock valued at $133,000 after buying an additional 2,243 shares in the last quarter. 60.95% of the stock is owned by institutional investors.

Celsius Company Profile

Celsius Holdings, Inc NASDAQ: CELH develops, markets and distributes functional beverages designed to support active lifestyles. Its flagship CELSIUS brand offers carbonated and non-carbonated energy drinks, including products positioned around energy, fitness and wellness. The company also markets CELSIUS Essentials, CELSIUS Vibe and powdered drink mixes, with product formulations that commonly feature ingredients such as caffeine, vitamins and other functional components.

Founded in 2004, Celsius has expanded from a niche fitness beverage business into a broader energy-drink platform.

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